Audited Annual Financial Statements For the year ended December 31, 2020 Tangerine® Balanced Portfolio Tangerine Balanced Portfolio Audited Annual Financial Statements for the year ended December 31, 2020 (In Canadian dollars, unless otherwise indicated) Independent Auditor’s Report To the Unitholders and Trustee of Tangerine Balanced Portfolio (the Fund) Our opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as at December 31, 2020 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS). What we have audited The Fund’s financial statements comprise: • the statement of financial position as at December 31, 2020; • the statement of comprehensive income for the year then ended; • the statement of changes in net assets attributable to holders of redeemable units for the year then ended; • the statement of cash flows for the year then ended; and • the notes to the financial statements, which include significant accounting policies and other explanatory information. Basis for opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Fund in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements. Other matter The financial statements of the Fund for the year ended December 31, 2019 were audited by another auditor who expressed an unmodified opinion on those statements on April 14, 2020. Other information Management is responsible for the other information. The other information comprises the Management Report of Fund Performance. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 2 Tangerine Balanced Portfolio Audited Annual Financial Statements for the year ended December 31, 2020 (In Canadian dollars, unless otherwise indicated) Responsibilities of management and those charged with governance for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Fund’s financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Fund to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Chartered Professional Accountants Licensed Public Accountants Toronto, Ontario March 24, 2021 3 Tangerine Balanced Portfolio Audited Annual Financial Statements for the year ended December 31, 2020 (In Canadian dollars, unless otherwise indicated) Statements of Financial Position Statements of Comprehensive Income As at For the years ended December 31, December 31, December 31, December 31, 2020 2019 2020 2019 Assets Income Current Assets Dividends (Note 3j) $ 23,856,006 $ 25,733,219 Investments (Notes 3c and 5) $ 1,547,917,528 $ 1,452,636,996 Interest for distribution purposes (Note 3j) 16,443,694 15,463,756 Cash (Note 3m) 440,261 1,212,037 Net realized gain on investments 37,492,790 2,181,087 Subscriptions receivable 3,734,843 3,092,664 Net realized gain from trust units/ underlying funds 3,171 — Receivable for securities sold 430,137 2,035 Change in unrealized appreciation on Accrued investment income 4,996,124 4,825,414 investments 61,344,169 153,542,114 Total assets 1,557,518,893 1,461,769,146 Net gain on financial assets and liabilities at fair value through profit or loss 139,139,830 196,920,176 Liabilities Net realized gain (loss) on foreign exchange 40,596 (61,426) Current Liabilities Change in unrealized appreciation Payable for securities purchased 125,182 710,385 (depreciation) on foreign exchange 67,160 (62,390) Redemptions payable 3,843,667 2,632,158 Total income 139,247,586 196,796,360 Accrued expenses 1,392,950 2,603,979 Expenses Total current liabilities 5,361,799 5,946,522 Management fees (Note 10a) 11,695,912 11,216,734 Net assets attributable to holders Administrative fees (Note 10a) 2,192,984 2,103,138 of redeemable units $ 1,552,157,094 $ 1,455,822,624 Other expenses including Number of redeemable indirect taxes (Note 10a) 1,568,101 1,682,510 units outstanding (Note 7) 94,847,306 95,330,341 Independent Review Committee fees Net assets attributable to holders of (Note 10a) 12,852 12,461 redeemable units per unit (Note 3e) $ 16.36 $ 15.27 Foreign withholding taxes (Note 6) 1,691,261 1,789,993 Transaction costs (Note 3g) 73,893 49,487 Total expenses 17,235,003 16,854,323 Approved by the board of directors of Tangerine Investment Less: Rebated and absorbed expenses (Note 10a) (6,768) (12,461) Management Inc. Net expenses 17,228,235 16,841,862 Increase in net assets attributable to holders of redeemable units from operations $ 122,019,351 $ 179,954,498 Increase in net assets attributable Ramy Dimitry, Director Timothy Morris, Director to holders of redeemable units from operations per unit (Note 3l) $ 1.29 $ 1.91 The accompanying notes are an integral part of the financial statements